IFAD warns KP against replacing KPRETP chief, cites risk to Rs50bn project progress

• Agency says leadership change at this critical stage could slow implementation, delay critical decisions

• €157.55m rural transformation project upgraded after marked improvement in performance

• Loan disbursement rises from 8% to 24% under current project director

• IFAD says prior concurrence mandatory before replacing key project officials

 PESHAWAR: The International Fund for Agricultural Development (IFAD) has urged the Khyber Pakhtunkhwa government and the federal Ministry of Economic Affairs not to replace the Project Director of the €157.55 million (approximately Rs50 billion) Khyber Pakhtunkhwa Rural Economic Transformation Project (KPRETP), warning that a change in leadership at this critical stage could slow implementation, delay key decisions and undermine the significant progress achieved over the past two years.

In a letter addressed to both the provincial and federal governments, IFAD stressed that the project has entered a decisive phase where continuity in leadership is vital to sustaining implementation momentum and ensuring that development targets are met within the agreed timeframe.

The development finance agency noted that the KPRETP had initially been classified as an "Actual Problem Project" because of implementation delays and weak overall performance. However, following sustained supervision, corrective measures and the efforts of the current project management, the initiative has now been upgraded to the status of a "Potential Problem Project," reflecting marked improvements in implementation and operational performance.

According to the letter, when Amjad Meraj assumed charge as Project Director, the project's loan disbursement rate stood at just eight percent. Through enhanced project management and accelerated implementation, the disbursement rate had risen to 24 percent by April 30, accompanied by substantial improvements in project execution and expenditure.

IFAD observed that the project's implementation trajectory has continued to improve steadily and, if the current pace is maintained, both loan utilization and expenditure are expected to exceed 40 percent by June 2027.

The organization further pointed out that considerable financial and technical resources had been invested during the past two years to strengthen the Project Director's professional capacity through specialized training, technical assistance and institutional support. Replacing the incumbent at this stage, the letter cautioned, could interrupt administrative continuity, weaken institutional memory, delay decision-making and adversely affect overall project coordination.

The letter also reminded both the Government of Pakistan and the Government of Khyber Pakhtunkhwa that, under the financing agreement governing the project, IFAD's prior concurrence is mandatory before the appointment or replacement of the Project Director or any other key project officials.

Reaffirming the importance of stable leadership, IFAD requested both governments to retain Amjad Meraj as Project Director in order to safeguard the gains made so far, maintain implementation momentum and facilitate the successful completion of the €157.55 million rural transformation project.

The agency also urged the provincial and federal authorities to consult IFAD before taking any decision regarding appointments or changes to key project positions, emphasizing that adherence to the agreed financing framework is essential for ensuring effective project governance and uninterrupted implementation.